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© Copyright Comviva Technologies Limited. 2013
CTO Forum 2014 – Dhaka, Bangladesh
Capitalising on the Mobile Commerce Revolution
Kamaljeet Rastogi
© Copyright Comviva Technologies Limited. 2013
What is the potential for Mobile Commerce?
Commerce done using Mobile phones and related technologies
Mobile Commerce will become bigger than E-Commerce
Central Banks prefer less Cash economy - Banks, Telecom
Operators and Retailers need to work together
The burden of cash usage on society is substantial. Almost
1.5% of GDP
© Copyright Comviva Technologies Limited. 2013
Levers to displace cash
More
Merchants
More
Consumers
More
Volume
More
Transactions A
ccep
tan
ce
Gro
wth
Fin
anci
al
Incl
usi
on
Pro
du
ct
Pen
etra
tio
n
Sm
all T
icke
t
Tran
sact
ion
s
© Copyright Comviva Technologies Limited. 2013
AFFLUENT
MASS MARKET
UNDER-SERVED UNDER-BANKED
MOBILE WALLET
MOBILE WALLET / BANKING
MOBILE MONEY
• Driving speed and convenience of making payments
• Secure mobile wallet with payments, couponing, loyalty and ticketing integration
• NFC, QR, BLE and HCE for smart phone based payments
• Electronification of Cash • Driving Financial Inclusion • Domestic/International Remittance • Use of USSD, SMS, STK and IVR
Product Offerings
Target Segments
Mobile based solutions
For all consumer segments...
Segment Solution
© Copyright Comviva Technologies Limited. 2013
Tanzania: Operator-led model
- 5
10 15 20 25
Tran
sact
ion
(M
n) Number of transactions
Number of Transactions
0% 5%
10% 15% 20% 25% 30% 35%
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12
Pen
etra
tio
n (
%) Service penetration
Service penetration
213 million transactions in a year 33.8% service penetration
Market Scenario
Demand for MFS
Mobile operators: 7
Mobile penetration: 54%
Unbanked population: 87%
Need for affordable and faster domestic money transfer
Most urban youth send money back home
Informal channels (buses, courier men) transfer money
High commission: 10% of transfer value
Informal channels take 2 to 3 days to transfer money
Services: domestic money transfer and bill payments
Success indicators: >30 million transactions per month
Agent Network: >14,000 channel members
Perceived value: affordable, faster and safer
Consumer Uptake
Airtime Top-up
32%
Domestic remittance
14% Cash-in
16%
Cash-out 15%
Bill payments
2%
Others 21%
Transaction
30 million monthly transactions
© Copyright Comviva Technologies Limited. 2013
Zimbabwe: Operator-led model
Mahindra Comviva’s mobiquity™ powered EcoCash extends a
convenient multipurpose retail payment solution to consumers
mobiquity™ equips customers with a mobile wallet account to
pay for goods & services, pay for transport services, transfer
funds and receive salaries
Market scenario
Our solution
Customer uptake
With 25% banking penetration, Zimbabwe is a cash-intensive
economy
Following Zimbabwe’s switch to the USD in 2009, and
enforcement of a minimum USD 1 denomination,
Zimbabweans face an acute shortage of change
1.98 million customers (27.6% of the total base) uses EcoCash
20 million transactions were handled by mobiquity™ in August
2014.
Merchant payments, bill payments, remittance and airtime top
up constitutes 50% of total transactions
Mobile Money transactions now valued at 43% of the GDP
1.10 1.50 1.85 1.98
17.2% 22.2%
26.4% 27.6%
0%
10%
20%
30%
0
1
2
3
Mar-12 Jun-12 Sep-12 Nov-12
Serv
ice
pe
ne
trat
ion
(%
)
Cu
sto
me
rs (m
n)
EcoCash customers (million)
EcoCash service penetration (%)
EcoCash customers and service penetration
1.1 1.6 2.5 3.1 0.9
0.9 1.2
1.4 $37.9
$58.0
$84.9 $96.5
0
25
50
75
100
0
2
4
6
Aug-12 Sep-12 Oct-12 Nov-12
Tran
sact
ion
val
ue
(USD
mn
)
Tran
sact
ion
vo
lum
e (m
n)
Fund based transaction volume (mn)
Non fund based transaction volume (mn)
Total transaction value (USD mn)
EcoCash monthly transactions volume and value
Airtime top up
35%
Bill payments
3%
Merchant payments
3% Cash in
9% Cash out
8%
Domestic remittance
9%
Salary transfer
1%
Account manageme
nt 32%
EcoCash transaction segmentation
© Copyright Comviva Technologies Limited. 2013
India: Bank-led model
Leading International bank in India
Sole reliance on the ‘bank branch route’ limits
services accessibility
In India foreign banks are allowed to open only
12 retail branches in a year
Broad base reach and extend convenient access to
banking services
Approximately handles 60,000 transactions monthly
70% of total Hello Money users actively use services
every month
Average number of transactions per active customer
equals 6.16
Business need
Our solution
Customer uptake
Deployed Mobile Banking to overcome supply
constraints and extend convenient banking services
Branded ‘Hello Money’ the service allows customers to
conduct fund-based transactions (pay bills, transfer
money to own and third party account as well as non-
fund transactions)
Quality of Experience
Personalized Services
Convenient banking access
© Copyright Comviva Technologies Limited. 2013
Mobile Wallet
A mobile wallet replicates the
physical leather wallet
Open wallet supports: Bank Accounts; Cards: Credit, Debit, Prepaid; Cash: Stored Value Account
Allows both proximity and remote payments Supports an integrated
basic loyalty program
Allows promotions, coupons to be configured
Can be integrated to data warehouse for BI
Mobile Payments
Mobile Application
QR Code
NFC
Add on
Collect Loyalty Points
In-Application Location Based Ads
© Copyright Comviva Technologies Limited. 2013
Mobile Wallet Platform
PAYMENT INSTRUMENT SUPPORT
ACCESS CHANNEL SUPPORT
TECHNOLOGY SUPPORT
Cards: credit, debit, prepaid
Bank Accounts
Stored Value Accounts
Mobile
Web
NFC
QR
App Based
PAYMENTS
Proximity
Remote
• NFC based payments • Merchant generated QR
• In App Purchase: Ticketing and Reservations • Bill Pay through QR • Mobile/Web Checkout • Virtual Shopping
ADMIN MODULES
Admin User Management
User Management
Create User Create Group Create Roles
Merchant Provisioning
Consumer Management
Maker Checker Setup
Limits and Thresholds
Reporting
O&M
VALUE ADDS Couponing
Loyalty
BLE
HCE
© Copyright Comviva Technologies Limited. 2013
• Enable Consumers to interact
and Place Bets Anytime
Anywhere
• Customer can leverage Smart
phone app to view product
details
• Customer can place orders by
looking at specifications and
prices in the app
Smart Posters: Smarter way to Interact
Capturing customer’s attention @ right place @ right time
© Copyright Comviva Technologies Limited. 2013
Using geo-fencing for location specific Notifications
Location Based Promotions
Always Auto Open Tab
Utilizing GPS Information and Geo-fencing capabilities to push Real-time location based offers and promotions
Customer opt-in combined with Offer analytics will enable the delivery of offers that match customer needs and enable a cost effective marketing channel for merchants
© Copyright Comviva Technologies Limited. 2013
2-3M 3-10M 70M
Bluetooth Notifications
Minimal Expense: USD 30 / beacon
Hassle free & seamless pairing
Single Coin Battery for 2 years
Proximity Payment
Location based offer
Check in / Check out
Create Multiple Zones around Beacon
© Copyright Comviva Technologies Limited. 2013
Remote Payments: Bill Pay through QR
Scan QR on physical or digital bill
Supports one-click pay: Confirm payment through default payment card
© Copyright Comviva Technologies Limited. 2013
Security Practices for Mobile wallet platform
Mobile Wallet Security
OWASP Classified Vulnerabilities Prevention for Web Applications
PCI DSS Data Security Compliance, Tokenization
Web Services Security – XML Injection Flaws prevention, message level encryption, AML for B2B Authentication
2-Factor Authentication
Lost Mobile Device Handling
OS, Database & App Server Hardening
DB Security • Schema Separation – separation
of business entities and transaction data
• Transparent Data Encryption and database Vault
Security integrated with SDLC – threat modeling, source code scanning &
penetration testing
© Copyright Comviva Technologies Limited. 2013
Case Study: Merchant Acquired & Bank
Large enterprises
• ICICI Prudential (leading life
insurance company)
• Essel World (India’s largest
amusement park)
• Quickr (India’s largest online and
mobile classifieds portal)
Small & mid size retailers
• Lotmobiles (multi-brand mobile retail
chain)
• Includes multiple travel agencies,
jewelers, opticians, photo studios,
electronic store & educational
institutes
Micro-merchants • Includes multiple chemists,
departmental stores and garment
stores
Merchants
on-board
Opportunity
in India
12 million retailers 1 Million+ POS devices Around 368 million credit & debit
cards Source: RBI
Watch the payPLUS Merchant Video at Mahindra Comviva_s payPLUS.mp4
“The app is very easy and simple to use”
MB Photo Studio,
Bangalore Test
imo
nia
ls
Nimmi Nutrition & Slim zone, Hyderabad
“Simple to use. I have started referring this solution to my
friends who have problems of accepting payments on field”
As per Comviva survey of i.pos merchants: 80%+ merchants have rated the app highly on usability 72% merchants have referred i.pos to others
© Copyright Comviva Technologies Limited. 2013
A Day in the Life Of..
Picks up a coffee & newspaper –
pays via mobile using NFC
Pays for the taxi ride to work using
NFC
During a break at work - buys movie
ticket s for the weekend using Mobile
App
Joins a colleague tor lunch, splits the
bill via mobile using NFC
Sees a poster advertising headphones and
adds it to his wish-list – QR Code
Passes a store and gets an offer for the
headphones via BLE.
Decides to buy and redeems the offer using NFC
Takes a metro back home and pays
using NFC
During the ride back home, downloads
his favorite music (through mobile app)
and pays through wallet
At breakfast:, pays
his electricity bill using wallet and QR code on the bill